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Apple's China Woes Spark Tech Sector Jitters

Concerns over Apple's revenue from China have intensified following reports that China is considering a probe into Apple's app store fees and practices. This development has exacerbated an already cautious sentiment in the tech sector, which was under pressure due to disappointing earnings from major players like Alphabet and AMD. The potential regulatory scrutiny adds to existing trade tensions, increasing perceived risks in the tech industry and contributing to a broader risk-off mood among investors.

The heightened risk aversion has led to a flight to safe-haven assets, with US Treasuries, the yen, and gold reaching session highs. This shift in investor sentiment has particularly impacted tech-heavy indices such as the Nasdaq 100, which saw futures hit the day's lows. The broader market is reacting to these developments with increased caution, reflecting the uncertainty surrounding tech earnings and geopolitical factors.

As of 04:11 on February 5, the ES1 futures are trading at 6,029.75, down from the last close of 6,063.00. The market's response underscores the growing concerns over regulatory challenges and trade disputes affecting the tech sector.